Tips for Trading Your First Option
May 02, 2018
Concepts

Tips for Trading Your First Option

Learning how to trade options takes time and patience. Luckily, there are plenty of courses and tools to help investors through this process. Selling covered calls for income is a great way to dip your toes into the options market, before moving onto buying calls and puts. We will examine these 2 primary strategies that are...

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2 months ago
Use Bid/Ask Spreads to Measure Liquidity, Not Open Interest
March 22, 2018
Concepts

Use Bid/Ask Spreads to Measure Liquidity, Not Open Interest

One question we’re often asked about our trades is why we would present ideas that have low volume and open interest. The answer might surprise you: It’s because open interest and volume are not reliable indicators of liquidity. Option liquidity is primarily a function of the underlying stock’s liquidity. Here’s why:...

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3 months ago
Secret to Consistent Income with Options
March 19, 2018
Concepts

Secret to Consistent Income with Options

The success to trading any strategy on stocks or options is consistency. This is true for both researching the underlying stock or ETF, and choosing the right trading strategy. Having a consistent approach such as technical or fundamental analysis leads to reliable research that doesn’t conflict. The same applies to...

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3 months ago
Generating Consistent Income with Covered Calls
July 14, 2017
Concepts

Generating Consistent Income with Covered Calls

Generating consistent income with covered calls can be achieved when using a disciplined and methodical approach. It’s important to understand your personal preferences before searching for income opportunities on your portfolio. Choosing expirations that suits your trading frequency and strike prices that fit your risk...

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11 months ago